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Can Import and Export Trade Licenses Be Handled by Professional Agents? What Are the Core Compliance Requirements?
or complex compliance issues.
clearance and fund security.
I am the person in charge of a small foreign trade enterprise in Shanghai mainly engaged in the import and export of fine chemical raw materials. Last week, we finalized an export order of azo dyes for a Middle Eastern customer, the shipping date is scheduled in 10 days, and the shipping company has urged us twice for manifest confirmation.
But our company has never handled the import and export trade license for such sensitive goods, and I was so anxious that I suffered from insomnia last night. I heard from peers before that some enterprises encountered pitfalls when hiring unqualified agents for licensing, who charged high fees but failed to obtain the license, finally the containers were detained at the port, which not only required compensation of more than 100,000 yuan in liquidated damages to the customer, but also incurred tens of thousands of yuan in port detention fees and container rental fees.
That is simply a devastating blow to small companies like ours. I would like to ask if Zhongshen can act as an agent to handle this type of license? And what are the compliance misconceptions that must not be stepped on during the handling process?
Grace WangYears of service：10Customer Rating：5.0
Senior Foreign Trade ConsultantStart a Chat
First of all，we need to expose common licensing misconceptions in the industry: First，crediting the verbal promises of "all-round agents" without verifying their licensing qualifications for sensitive goods，many small agents without filing qualifications submit materials that do not meet customs supervision requirements，Second，failing to match the supervision conditions corresponding to the HS code of the goods in advance，submitting applications blindly leading to approval rejection.
If you fall into these misconceptions，a chain of negative reactions will follow: After the license approval is rejected，the booked containers will be detained at the port，the customs will launch detention and inspection，resulting in high port detention fees and container rental fees. If the problem is not solved within 14 days，the goods may be auctioned，At the same time，you need to pay liquidated damages to overseas customers，the enterprise credit rating will be downgraded，all subsequent customs declaration business will be placed under key supervision by the customs，and even affect the normal customs clearance of other orders.
Physical risk isolation measures: You need to first require the agent to provide the "Filing Certificate of Import and Export Goods License Agency Qualification"，then entrust a professional institution to verify the supervision conditions of the HS code of the goods in advance，and submit the application only after ensuring that the materials fully meet the requirements.
Exclusive loss reduction tips: Our company provides pre-audit advance service，which conducts compliance audit on all materials 3 working days in advance，and adjusts immediately if any problem is found，We have opened expedited approval green channel for sensitive goods，which can coordinate with the supervision department to complete the approval within 3 working days，At the same time，we can assist in signing the "Manifest Delay Confirmation Agreement" with the shipping company to reserve a 3-working-day buffer period，to avoid manifest breach of contract caused by licensing delay.
Daniel XuYears of service：10Customer Rating：5.0
Director of Import & Export OperationsStart a Chat
Import and export trade license is one of the core compliance documents for customs declaration. If the license information is inconsistent with the customs declaration information, it will directly trigger customs valuation and compliance verification, and even lead to deletion of declaration form and re-declaration. When handling the license, you need to ensure that the HS code, goods name, quantity, consignor and consignee information are completely consistent with the customs declaration form.
If sensitive goods are involved, you also need to mark the "Sensitive Goods Supervision Filing Number" on the license. If you need to modify the information after the license is handled, you need to submit a change application to the issuing authority 3 working days before customs declaration, otherwise the customs will directly return the declaration form, affecting the customs clearance efficiency. In addition, if the goods are imported or exported across customs districts, you need to ensure that the issuing authority of the license is networked with the supervision department of the customs declaration port, to avoid customs clearance blockage caused by information intercommunication failure.
Lucas LiuYears of service：8Customer Rating：5.0
Senior Operations ConsultantStart a Chat
The processing progress of import and export trade license directly affects the implementation of logistics solutions. If the license is not completed, the shipping company cannot confirm the manifest, and the freight forwarder cannot arrange container pickup and loading.
For sensitive goods, you need to clarify the processing cycle of the license before booking space. If the estimated processing cycle exceeds the shipping date, you need to adjust the shipping date in time or apply for expedited licensing.
If the space has been booked but the license approval is delayed, you need to immediately apply to the shipping company for "detention fee reduction and exemption", and apply to the terminal for "free storage period extension" at the same time, to avoid high logistics costs. In addition, if the goods are hazardous chemicals, the "Dangerous Goods Classification Number" on the license must be completely consistent with the number on the bill of lading, otherwise the shipping company will refuse to load the goods, and you may even be punished by the maritime authority.
Evelyn LiYears of service：3Customer Rating：5.0
Cross-border Compliance SupervisorStart a Chat
Import and export trade license is an important compliance basis for cross-border tax planning. If the goods have a legal import and export trade license, you can enjoy corresponding preferential tax policies such as tariff reduction and exemption, VAT deferral.
If you fail to handle the license or the license does not meet the requirements, you need to pay full tariff and value-added tax when the goods are cleared, you cannot enjoy tax preferences, and you may even be identified as "illegal import and export" by the tax authority, triggering tax letter investigation, affecting the export tax refund qualification of the enterprise. In addition, if the enterprise entrusts an agent to handle the license, you need to ensure that the service fee invoice issued by the agent meets the tax compliance requirements, which can be included in the operating cost of the enterprise and deducted before tax.
Victor SunYears of service：5Customer Rating：5.0
Trade Risk Control ManagerStart a Chat
Import and export trade license is one of the core compliance documents for cross-border foreign exchange receipt and payment. When handling foreign exchange settlement and purchase, the bank will require the corresponding import and export trade license.
If you cannot provide it, the bank will refuse to handle the foreign exchange receipt and payment business, resulting in the enterprise being unable to recover or pay the payment for goods. When handling the license, you need to ensure that the "foreign exchange receipt/payment account" on the license is completely consistent with the bank account information.
If cross-border RMB settlement is involved, you need to mark the "CIPS settlement" logo on the license. In addition, if the goods are sensitive goods such as precursor chemicals, the "foreign exchange receipt and payment supervision number" on the license must be consistent with the filing number of the State Administration of Foreign Exchange, otherwise the State Administration of Foreign Exchange will freeze the cross-border foreign exchange receipt and payment account of the enterprise.
Linda GaoYears of service：7Customer Rating：5.0
Documentation SupervisorStart a Chat
Import and export trade license is the core compliance basis for the performance of international trade contracts. If the goods agreed in the contract need to handle the license, but the responsible party for license handling is not specified in the contract, it will lead to performance disputes. If you entrust an agent to handle the license, you need to specify clauses such as "licensing period, compliance requirements, liability for breach of contract" in the agency contract.
If the agent fails to handle the compliant license within the agreed time, it shall bear all losses such as port detention fees and liquidated damages. In addition, if the goods are intellectual property protection goods, the "intellectual property filing number" on the license must be consistent with the intellectual property clauses in the contract, otherwise it will trigger intellectual property infringement disputes, and the goods will be detained by the customs.
Jason WuYears of service：10Customer Rating：5.0
International Logistics & Supply Chain ManagerStart a Chat
Import and export trade license is one of the core bases for on-site customs inspection. If you cannot provide a valid license during on-site inspection, the customs will directly detain the goods and launch a compliance investigation. When handling the license, you need to ensure that the "goods specification, model, packaging method" on the license are completely consistent with the actual goods.
If dangerous goods are involved, the "packaging number" on the license must be consistent with the UN number of the actual packaging. In addition, if it is found during on-site inspection that the license information is inconsistent with the actual goods, you need to immediately contact the issuing authority to handle the change procedures, and submit a "situation explanation" to the customs at the same time, to avoid being identified as illegal import and export and incurring high fines.
Cindy ChenYears of service：3Customer Rating：5.0
Key Account ManagerStart a Chat
Import and export trade license is one of the core compliance documents for export tax refund audit. If the enterprise cannot provide the corresponding license when handling export tax refund, the tax authority will reject the tax refund application, and even identify the enterprise as "false export", triggering tax inspection. When handling the license, you need to ensure that the "export goods name, quantity, amount" on the license are completely consistent with the customs declaration form and value-added tax invoice.
If entrusted processing goods are involved, the "processing enterprise number" on the license must be consistent with the processing enterprise number filed with the tax authority. In addition, if the enterprise entrusts an agent to handle the license, it needs to file the copy of the license as a tax refund document, otherwise the tax authority will require the enterprise to supplement materials, affecting the tax refund progress.